We would like to express our appreciation for your ongoing support. This letter is a business update provided to shareholders of Micro Connect Group and we would like to share this with the broader community. This update outlines our strategic pivot to a private fund structure for MIFC and the integration of our proprietary AI-driven investment infrastructure. We look forward to continued engagement as we initiate deployment and external fundraising for MIFC in 2026.

Dear Shareholders,

I wish you happy holidays and a prosperous new year.

As the year draws to a close, I wanted to share with you some important updates on our recent developments and strategic direction.

  1. The listing application of Micro Connect International Finance Company Ltd. (MIFC) lapsed today, and we will not reactivate the listing application.  We will kickstart MIFC’s deployment program in early 2026.
  2. Based on the positive investor feedback received during MIFC’s non-deal roadshow meetings, we now plan to operate MIFC as a private fund.
  3. We have recently developed a suite of AI-enabled tools to support our upcoming investment deployment program, including investment algos, AI-assisted originations, and digital ledger services, etc.

Decision Not to Reactivate MIFC’s Listing Application 

After careful consideration, we have decided not to reactivate MIFC’s listing application which lapsed today – six months after our A-1 filing on June 18, 2025. This decision stems from our recent recognition that the extended timeline associated with a proposed public listing has begun to outweigh its anticipated benefits, causing delays to MIFC’s deployment schedule and impacting Micro Connect’s broader progress.

Recent conversations we have had with potential limited partners (LPs) and investment targets have reinforced strong demand for MIFC on both the funding and financing sides. To prioritize speed and execution, we will now operate MIFC as a private fund in the near term. This approach offers greater flexibility in both fundraising and deployment, faster time-to-market, and access to a wider pool of global institutional investors. We remain open to a potential public listing of MIFC as an investment company in the future.   Our plan to list Micro Connect group company in the foreseeable future remains unchanged.  

Advancing Micro Connect 3.0: Launching MIFC’s Deployment Program in 1Q 2026

With this pivot, we can fully concentrate on MIFC’s deployment program – which had been put on hold during the listing process – and commence external fundraising for the private vehicle shortly. Micro Connect will anchor the fund with a US$100 million commitment.

To fully appreciate the implications of this pivot, it is helpful to reflect on Micro Connect’s evolution since our founding in 2021. Our progress can be viewed in three distinct phases, each building on the last to position us as a leading platform for cashflow-based investing.

  • Micro Connect 1.0 (Early 2021 to Early 2024): This phase focused on proto-typing the CFO product for the business community seeking capital. During this period,  we developed a robust investment framework and deployed over US$500 million to more than 13,000 businesses in China. Key insights included (1) the strong appeal of cashflow obligations (CFOs) as a financing tool to small businesses and (2) the essential role of local partners – whom we call Origination and Control Partners (OCPs) – in enabling low-cost, large-scale deployment while enhancing risk controls for our distributed and diversified investments.
  • Micro Connect 2.0 (Late 2022 to early 2025): This phase focused on proto-typing the CFO product for the investment community seeking such investment.  During this period, We shifted emphasis to building an investor base for cashflow-based assets. (1) Institutional investors responded positively to the rich cashflows underlying the CFOs, but (2) highlighted the need for an intermediary to bridge the gap between the non-standardized nature of these opportunities and traditional investment structures.
  • As we now enter Micro Connect 3.0:  This phase will focus on proto-typing the CFO product for the market making/investment origination community seeking to operate as “central kitchens”, creating standardized connections between cashflow-based assets and global institutional investors. Drawing on our 1.0 expertise, MIFC will operate as a private investment vehicle to procure distributed and diversified cashflow opportunities worldwide, package them into a dynamic portfolio backed by “real-world cashflows” (RWCs), and distribute standardized units of this RWC portfolio in tranches tailored to varying investor risk profiles.

MIFC exemplifies the “originate-to-distribute” (OTD) model – the first of many “central kitchens” to be launched by third-party managers worldwide. (Direct LP investment in this inaugural vehicle will remain an attractive option for those seeking diversified exposure.) Over time, this model will foster a thriving market ecosystem, with Micro Connect as the foundational service platform providing tools such as investment algos, AI-assisted origination, risk management analytics, and digital ledger services to numerous third-party “central kitchen” operators.

Micro Connect 3.0 AI Roadmap

The small-ticket size, high-volume, distributed, and non-standardized characteristics of cashflow-based investments have shown us – through our 1.0 and 2.0 experiences – that reliance on large on-the-ground teams is unsustainable. We must leverage digital and AI capabilities for efficient acquisition, underwriting, risk management, and execution.

Thanks to significant advances in AI and our intensive in-house development efforts over recent months, we are nearing completion of an AI-driven transformation of our infrastructure. We are prepared to deploy our AI-assisted investment algos and origination tools fully as we begin investing in Q1 2026.

In particular, our new “Micro Connect Navigation System” will enhance precision and efficiency across the origination and investment process. By using AI to align interests among key stakeholders – “labor” (investment targets), “capital” (investors), “land” (landlords), and “leverage” (enabling technologies) – it will facilitate deal execution more effectively. This AI-driven model represents Micro Connect 3.0’s core competitive advantage.

These developments underscore our adaptability and commitment to long-term value creation for all stakeholders. By launching our inaugural “central kitchen” as a private fund and harnessing AI, we are optimally positioned to deliver standardization, scalability, and sustainability in cashflow-based financing and investing for small businesses worldwide.

We value your continued support and welcome any feedback. We look forward to continued engagement as we initiate deployment and external fundraising in 2026.

Charles Li

December 18, 2025